Blackburn, United States District Judge.
This matter is before me on the following: (1) the
The plaintiffs assert claims under the Employee Retirement income Security Act of 1974 (ERISA). The defendant is a signatory to a collective bargaining agreement (CBA) with plaintiff Regional Local
The defendant is now delinquent in its obligation to report and pay contributions to the Trusts and has therefore violated its duties under the CBA. Demand was made on the defendant to resolve its delinquency, but it failed to do so. For the reasons detailed in the recommendation [#44], entry of default judgment against the defendant is proper.
1. That the
2. That the underlying
3. That under Fed. R. Civ. P. 55,
4. That the default judgment
5. That otherwise the
6. That Count II of the Complaint [# 1] is
7. That this case is
ENTERED BY MAGISTRATE JUDGE KRISTEN L. MIX
This matter is before the Court on Plaintiffs'
Plaintiffs filed this lawsuit on January 28, 2013, alleging violations of the Employee Retirement Income Security Act of 1974 ("ERISA").
Pursuant to Fed. R. Civ. P. 55, default may enter against parties who fail to appear or otherwise defend a lawsuit.
In determining whether a default judgment is warranted, the Court must first consider whether it has jurisdiction over the subject matter and the defendants. Dennis Garberg & Assocs., Inc., v. Pack-Tech Int'l Corp., 115 F.3d 767, 772 (10th Cir.1997); Williams v. Life Sav. & Loan, 802 F.2d 1200, 1202-03 (10th Cir.1986). The Court must do so in consideration of the well-established rule that "a judgment is void if the court that enters it lacks jurisdiction over either the subject matter of the action or the parties to the action." United States v. 51 Pieces of Real Prop., 17 F.3d 1306, 1309 (10th Cir.1994).
Plaintiffs assert that the Court has federal question jurisdiction over this matter because the action arises out of alleged violations of ERISA. Compl. [# 1] ¶ 11. Federal question jurisdiction is governed by 28 U.S.C. § 1331, which provides in pertinent part that "[t]he district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States." Because Plaintiffs' ERISA cause of action arises under federal law, the Court has jurisdiction over the subject matter. Accordingly, based on federal question jurisdiction, the Court finds that it has subject matter jurisdiction over this dispute.
In addition to subject matter jurisdiction, entry of a default judgment in a civil case requires personal jurisdiction over the defendant. Bixler v. Foster, 596 F.3d 751, 761 (10th Cir.2010). The Court must first address the adequacy of service in deciding whether it has personal jurisdiction over Defendant. See United States v. Elsberg, No. 08-cv-00522-MSK-KLM, 2010 WL 5177439, at *2 (D.Colo. Aug. 17, 2010). Plaintiffs' Complaint identifies Defendant as a corporation. Compl. [# 1] ¶ 9. Therefore, the Court analyzes the adequacy of service in the context of Fed. R. Civ. P. 4(h), which establishes the requirements for service on a corporation, partnership, or association. Such an organization may be served "in the manner prescribed by Rule 4(e)(1) for serving an individual," which in turn permits service by "following the state law for serving a summons in an action brought in courts of general jurisdiction in the state where the district court is located or where service is made...." Here, Plaintiffs served Defendant according to Colo.Rev.Stat. § 7-9-704(2), which provides in relevant part:
Plaintiffs have demonstrated that the registered agent for Defendant was not located at its registered agent address. Aff. of Aaron Stephens [# 32-1] ¶ 2; Advice to Court Regarding Return of Service [# 35-1] at 1-2. They have also demonstrated that they served Defendant at its principal
Plaintiffs bear the burden of establishing personal jurisdiction. Intercon, Inc. v. Bell Atl. Internet Solutions, Inc., 205 F.3d 1244, 1247 (10th Cir.2000). "[P]laintiff[s] need only make a prima facie showing [of personal jurisdiction] if the motion [for default judgment] is decided only on the basis of the parties' affidavits and other written materials." Dennis Garberg & Assocs., Inc., 115 F.3d at 773. "Defects in personal jurisdiction ... are not waived by default when a party fails to appear or to respond." Williams v. Life Sav. & Loan, 802 F.2d 1200, 1202 (10th Cir.1986) (citing V.T.A., Inc. v. Airco, Inc., 597 F.2d 220, 225 (10th Cir.1979)).
Id. at 1203. Plaintiffs assert in the Complaint that Defendant is incorporated in Colorado and has an address in Denver, Colorado. Compl. [# 1] ¶ 9; Aff. of Aaron Stephens [# 32-1] ¶¶ 2, 4. The Court therefore finds that it has personal jurisdiction over Defendant.
Even after a proper Entry of Default [# 40], the Court must decide "`whether the unchallenged facts constitute a legitimate cause of action'" such that a judgment should be entered. Bixler, 596 F.3d at 762 (quoting 10A Charles A. Wright, Arthur R. Miller & Mary K. Kane, Federal Practice and Procedure § 2688, at 63 (3d ed.1998)). "`There must be a sufficient basis in the pleadings for the judgment entered.'" Id. (quoting Nishimatsu Constr. Co. v. Houston Nat'l Bank, 515 F.2d 1200, 1206 (5th Cir.1975)). "[A] party is not entitled to a default judgment as of right; rather the entry of a default judgment is entrusted to the `sound judicial discretion' of the court." Greenwich Ins. Co. v. Daniel Law Firm, No. 07-cv-2445-LTB-MJW, 2008 WL 793606, at *2 (D.Colo. Mar. 22, 2008) (quoting Cablevision of S. Conn., Ltd. P'ship v. Smith, 141 F.Supp.2d 277, 281 (D.Conn.2001)).
Upon review of a motion for default judgment, assuming default was properly entered, the moving party enjoys the benefit of deferential pleading interpretation. See Olcott v. Del. Flood Co., 327 F.3d 1115, 1125 (10th Cir.2003). The Court deems the well-pled facts of the complaint to be true. Vibe Tech., LLC v. Suddath, No. 06-cv-00812, 2009 WL 2055186, at *1 (D.Colo.2009) (citing Dundee Cement Co. v. Howard Pipe & Concrete Prods., Inc., 722 F.2d 1319, 1323 (7th Cir.1983)). Undisputed facts set forth by the moving parties in
Accepting the well-pled allegations in the Complaint as true and for the reasons stated below, the Court finds that the allegations support entry of a default judgment on the ERISA claims against Defendant. Incorporating the allegations outlined in Section I. above, the Court finds that Defendant has failed to pay all contributions, plus accrued interest and liquidated damages, owed to Plaintiffs. See Compl. [# 1] ¶¶ 22-24, 31-34; Bd. of Trustees, Colo. Sheet Metal Workers' Local 9 Family Health Plan v. J & C Fabricating Co., No. 07-cv-01970-REB-MEH, 2009 WL 306731, at *2 (D.Colo. Feb. 6, 2009). Defendant's failure to remit the required contributions and accrued interest is a breach of its obligations under the Agreement and is a violation of Section 515 of ERISA, 29 U.S.C. § 1145. See Compl. [# 1] ¶ 15; J & C Fabricating Co., 2009 WL 306731, at *2. Under Sections 515 and 502(g) of ERISA, 29 U.S.C. §§ 1145 and 1132(g)(2), Defendant is obligated to pay the full amount of its delinquent contributions under the terms of the Agreement, plus interest. See Compl. [# 1] ¶¶ 20, 32; J & C Fabricating Co., 2009 WL 306731, at *2.
Because the Court deems the well-pleaded facts of the Complaint to be true, the Court finds that Plaintiffs have established that Defendant failed to pay the required contributions and interest. Accordingly, default judgment should be entered against Defendant.
In addition to finding that Plaintiffs have a basis for relief, default judgment may not be entered until the amount of damages has been ascertained. See Herzfeld v. Parker, 100 F.R.D. 770, 773 (D.Colo.1984). Actual proof must support any default judgment for money damages where there is an uncertainty as to the amount. Klapprott v. United States, 335 U.S. 601, 611-12, 69 S.Ct. 384, 93 L.Ed. 266, 93 L.Ed. 1099 (1949). This requirement ensures that a plaintiff is not awarded more in damages than can be supported by actual evidence. See id. The Court accepts as undisputed any facts set forth by the moving party in affidavits and exhibits. Id. Pursuant to Fed. R. Civ. P. 54(c), "[a] default judgment must not differ in kind from, or exceed in amount, what is demanded in the pleadings." Further, "[a]lthough upon default the factual allegations of a complaint relating to liability are taken as true, those allegations relating to the amount of damages suffered ordinarily are not." Dundee Cement Co. v. Howard Pipe & Concrete Prods. Inc., 722 F.2d 1319, 1323 (7th Cir.1983). Pursuant to Fed. R. Civ. P. 55(b), "[t]he Court may conduct hearings or make referrals ... when, to enter or effectuate judgment, it needs to ... (B) [d]etermine the amounts; (C) [e]stablish the truth of any allegation by evidence; or (D) [i]nvestigate any other matter." Plaintiffs here explicitly disavow the need for a hearing to determine damages. Motion [# 42-1] at 3.
Section 502(g)(2) of ERISA, 29 U.S.C. § 1132(g)(2), provides as follows:
Plaintiffs seek relief under each provision (A)-(E) of the statute, of which the Court notes the first four are mandatory. Id. (stating that "the court
The Court examines the monetary relief Plaintiffs sought in the Complaint, as "[a] default judgment must not ... exceed in amount[ ] what is demanded in the pleadings." Fed. R. Civ. P. 54(c). With respect to unpaid contributions, see 29 U.S.C. § 1132(g)(2)(A), Plaintiffs state that as of January 28, 2013, Defendant owed the three Plaintiff Trusts approximately $38,951.28. Compl. [# 1] ¶ 6. Based on Plaintiffs' assertion that Defendant was required "to file reports and make contributions by the fifteenth (15th) of each month for the prior month's work," Compl. [# 1] ¶ 17, the delinquency here alleged is Defendant's total delinquency through the end of December 2012.
The Motion seeks an award of $55,543.29 in unpaid contributions for the period of January 2012 through June 2014. [# 42-1] at 6. The problem with this request, however, is that the Complaint [# 1] does not provide any indication that Plaintiffs seek any unpaid contributions for any period after December 2012. Careful review of the Complaint reveals no allegation or request for continuous and ongoing relief through the date of any judgment entered in this case. See Drake v. City of Fort Collins, 927 F.2d 1156, 1159 (10th Cir. 1991) (stating that the Court is not required to interpret pleadings to "construct arguments or theories for the plaintiff in the absence of any discussion of those issues"). Thus, even with proper service of the Complaint and Summons, Defendant has had no notice that Plaintiffs are seeking unpaid contributions that accumulated after December 2012. See Boilermaker-Blacksmith Nat'l Pension Fund v. A & B Welding & Constr., Inc., No. 10-CV-2664-CM, 2011 WL 5151965, at *1 (D.Kan. Oct. 28, 2011) (stating that "[t]he purpose of [the default judgment portion of Fed. R. Civ. P. 54(c)] is to provide defending parties with adequate notice of the potential damages for which they may be liable"). Therefore, the Court must limit Plaintiffs' monetary relief to the period of January 2012 through December 2012, pursuant to Fed. R. Civ. P. 54(c).
Plaintiffs have provided sufficient evidence regarding unpaid contributions for the period January 2012 through December 2012 by submitting the Affidavit of Hannah E. Sutton ("Sutton") [# 42-7]. Ms. Sutton is the President and CEO of William C. Earhart Company ("Earhart"), which is the Third Party Administrator ("TPA") for the Regional District Council fringe benefit funds, i.e., for Plaintiffs in this matter. [# 42-7] ¶¶ 1, 3-4.
Id. ¶ 5. Based on Earhart's calculations, Defendant owes a total of $34,845.89 in unpaid contributions for 2012. Id. ¶ 9; Ex. 2A to Aff. of Sutton [# 42-4] (providing a breakdown of outstanding contributions for each month in 2012). Plaintiff has thus provided the Court with undisputed proof of the damages amount. The Court finds that this amount does not exceed the $38,951.28 requested in the Complaint. See Fed. R. Civ. P. 54(c). Therefore, the Court
With respect to interest on unpaid contributions, see 29 U.S.C. § 1132(g)(2)(B), Plaintiffs provide evidence through Ms. Sutton's Affidavit demonstrating that Defendant owes $14,686.52 in interest on unpaid contributions through July 18, 2014. Aff. of Sutton [# 42-7] ¶ 11; Ex. 2B to Aff. of Sutton [# 42-4] (providing a breakdown of interest calculations for the 2012 unpaid contributions). Plaintiff has thus provided the Court with undisputed proof of the amount of interest owed. Therefore, the Court
With respect to additional interest or liquidated damages, see 29 U.S.C. § 1132(g)(2)(C), the Court first notes that the Agreement does not provide for liquidated damages. 29 U.S.C. § 1132(g)(2)(C)(ii); Motion [# 42-1] at 7; Aff. of Sutton [# 42-7] ¶ 12. Thus, the Court must award as additional interest an amount equal to the interest on the unpaid contributions. 29 U.S.C. § 1132(g)(2)(C)(i). Therefore, the Court
Under Sections 515 and 502(g) of ERISA, 29 U.S.C. §§ 1145, 1132(g)(2)(D), Defendant is obligated to pay Plaintiffs' reasonable attorneys' fees and costs in this action. J & C Fabricating Co., 2009 WL 306731, at *2, 3. To determine a reasonable fee award, the Court must conduct a lodestar calculation as set forth in Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983); Anchondo v. Anderson, Crenshaw & Assocs., LLC, 616 F.3d 1098, 1102 (10th Cir.2010). A lodestar calculation requires multiplying the number of attorney hours expended to resolve an issue or perform a task by a reasonable hourly billing rate. Hensley, 461 U.S. at 433, 103 S.Ct. 1933. To determine the number of hours expended, the Court reviews counsel's billing entries to ensure that counsel exercised proper billing judgment. Case v. Unified Sch. Dist. No. 233, Johnson Cnty., Kan., 157 F.3d 1243, 1250 (10th Cir.1998) (internal quotation marks omitted). Once the Court determines the lodestar, it may "adjust the lodestar upward or downward to account for the particularities" of the work performed. Phelps v. Hamilton, 120 F.3d 1126, 1131 (10th Cir.1997).
"Billing judgment consists of winnowing the hours actually expended
As an initial matter, the records submitted by Plaintiffs demonstrate that three attorneys worked on this matter: Michael A. Evans ("Evans"), Jamie L. Reyes-Jones ("Reyes-Jones"), and James R. Kimmey ("Kimmey"). Aff. of Evans [# 42-3] at 3-13. However, Plaintiffs did not submit "a summary of relevant qualifications and experience" for either Ms. Reyes-Jones or Mr. Kimmey, as mandated by the Local Rules "for each person for whom fees are claimed." D.C.COLO.LCivR 54.3(b)(1). Accordingly, the Court may not entertain a request for attorneys' fees for these two individuals.
Plaintiffs did, however, submit the relevant information with respect to Mr. Evans. Aff. of Evans [# 42-3] ¶ 2. According to the billing records, he charged $255.00 per hour in this matter. See id. ¶ 4. The Court finds that the hourly rate of $255.00 is reasonable. See, e.g., Mrs. Condies Salad Co., Inc. v. Colo. Blue Ribbon Foods, LLC, No. 11-cv-02118-KLM, 2012 WL 1431371, at *2 (D.Colo. Apr. 24, 2012).
A party seeking an award of attorney's fees must demonstrate that the amount it seeks is reasonable. See Dewey v. Hewlett Packard Co., No. 05-cv-01482-REB-MJW, 2007 WL 707462, at *1 (D.Colo. Mar. 5, 2007). Therefore, counsel must make a good faith effort to exclude hours or costs that are "excessive, redundant or otherwise unnecessary." Hensley, 461 U.S. at 434, 103 S.Ct. 1933. Generally, the starting point for any calculation of a reasonable attorney's fee is the "lodestar," that is, the number of hours reasonably expended multiplied by a reasonable hourly rate. Id. at 433, 103 S.Ct. 1933; Malloy v. Monahan, 73 F.3d 1012, 1017-18 (10th Cir.1996). The Court is not required to reach a lodestar determination in every instance, however, and may simply accept or reduce a fee request within its discretion. Hensley, 461 U.S. at 436-37, 103 S.Ct. 1933.
The Court exercises its "discretion in making this equitable judgment" and does not "apportion the fee award mechanically" by considering each claimed expense and determining its reasonableness overall. Id. at 437-40, 103 S.Ct. 1933 (holding that the Court "should make clear that it has considered the relationship between the amount of the fee awarded and the results obtained"); see also White v. GMC, Inc., 908 F.2d 675, 684-85 (10th Cir.1990) (noting that the amount of fees accumulated to secure the desired result must be reasonably related to the type and significance of issue in dispute). Here, Mr. Evans billed for 56.386 of the 74.26 total hours expended by the three attorneys,
Finally, with respect to "[s]uch other legal or equitable relief as the court deems appropriate," see 29 U.S.C. § 1132(g)(2)(E), Plaintiffs ask in the Motion for an "order compelling [D]efendant to submit to an audit for the period of January 1, 2013 to the present." Motion [# 42-1] at 7-8. However, the Complaint contains no demand for an audit and, as previously noted, "[a] default judgment must not differ in kind from ... what is demanded in the pleadings."
Based on the foregoing, the Court
Finally, the Court ordered Plaintiffs to request default judgment on their claims no later than July 29, 2014. Minute Order [# 41]. Plaintiffs were warned that failure to do so could result in dismissal. Plaintiffs failed to timely file a motion requesting default judgment as to Count II of the Complaint. Accordingly,
The Court further
Dated: November 25, 2014